Avoid desperate real estate price cuts

REThink Real Estate

Big plans for business in 2018?
Give yourself the tools to own the new year at Connect SF, July 17-20, 2018

Q: We recently bought a retirement home out of state. We are trying to sell our longtime home, which began its listing at $550,000. After a few weeks, we dropped the price to $547,000; then after another few weeks to $525,000. We will accept anything over $500,000 but we have been told we need to list it high to play this stupid game of "offer/counteroffer."

Doesn’t it look to the average buyer that we are now desperate to sell with so many price drops? How do you say, "I want $500,000 and that is the bottom line!"? If I ask for $500,000, I am told all we will get is numbers in the $400,000 range. What are your thoughts?

A: There are really two schools of thought here. It seems as though you and your agent might come from different schools — and you both have valid arguments, to which there are valid counterarguments.

Your agent is certainly correct that if you list your home out of the gate at your absolute bottom-line price, you may be disappointed with the offers you receive, because buyers these days are negotiating more aggressively than at any time in recent memory and often will come in below the asking price, no matter what the asking price is (except in multiple-offer situations — keep reading for more on that).